MGI(SH:688114) Tai Ping Yang·2024-11-11 12:43Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the CSI 300 index in the next six months [11]. Core Views - The company has shown a slight increase in sales installation volume despite a challenging macro environment, with a backlog of orders sufficient to drive future performance [4][5]. - The company reported a revenue of 1.869 billion yuan for the first three quarters of 2024, a year-on-year decrease of 15.19%, and a net profit attributable to shareholders of -463 million yuan, down 134.28% year-on-year [3][7]. Summary by Sections Sales and Market Performance - The company achieved a cumulative sales installation volume of over 670 units for gene sequencers in the first three quarters of 2024, representing a 4% year-on-year increase [4]. - The DNBSEQ-G99 and DNBSEQ-E25 models saw significant growth, with DNBSEQ-G99 installations reaching 210 units (up 33% year-on-year) and DNBSEQ-E25 installations at 93 units (up 564% year-on-year) [4]. Order Backlog - As of September 30, 2024, the company had an order backlog of 820 million yuan, a year-on-year increase of 34.43%, with 63% from domestic orders and 37% from overseas [5]. Financial Performance - The company's gross margin improved by 1.72 percentage points to 61.47% year-on-year, despite a significant decline in net profit margin, which fell by 16.03 percentage points to -24.97% [6][7]. - The report forecasts revenues of 2.561 billion yuan, 3.009 billion yuan, and 3.541 billion yuan for 2024, 2025, and 2026, respectively, with expected growth rates of -12%, 17%, and 18% [7][8]. Cost Structure - The report indicates that the increase in sales and management expenses is primarily due to ongoing investments in overseas markets and fixed costs associated with completed infrastructure projects [6].